Now i've read the whole article! This guy I think, does know what's going on, but he seems to be espousing theories from the position of "lender of first resort". He says "So Warren Buffett is right — for the wrong reason. But Alan Greenspan is just plain wrong if he doesn't see an inflation threat. Freedom from inflation, and the stable currency that goes along with it, are fundamentals of prosperity and growth" I would argue those words only apply to the lenders of first resort. Those of you that are still paying your original house loan off after 10 or more years should think about how much the curent repayments are in comparison to when the loan was taken out and then reflect on the current value of the house, also the balance of the loan and how much that relates to your current income percentage wise. Now take that same amount and apply it to your income when the loan was taken out and see the percentage difference. Now, also consider your wealth situation if over the duration of that loan there was zero inflation and zero income growth. .............. Hve you done that yet. if you have, you should clearly see how inflation has helped your wealth position.
He also states:"Greenspan's mistake is that he has kept interest rates too low for too long, and now inflation is beginning to creep back into the US economy." and; "Greenspan's mistake is that he has kept interest rates too low for too long, and now inflation is beginning to creep back into the US economy."
Those words I agree with compltetely, but I see the result as being beneficial to the employed that have borrowings becuse inflation invariably rises at a rate faster than that of interest rates. To undertsand this, reflect back on the exercise you did with comparing the parameters of your home loan now to when it was taken out. certainly, interest rates will rise which increase repayments, but rental income rises faster which eventually will put your property into profit. inflation will also eventually help the capital value of your property..
I just noticed the names listed at the "trendmacrolytics website; "Goodman, Luskin, Gitlitz, Isenberg.
